Understanding Appraisals for Realtors: Essential Preparation Tips!

Welcome, everyone, to another insightful session with Matt Liss, a top 1% Chicagoland real estate agent. In this video transcript, Matt dives into the often overlooked but crucial aspect of real estate transactions – the appraisal process. Join us as we unravel Matt's expert advice on handling appraisals, ensuring successful deals, and maintaining client satisfaction.

  • Understanding the Significance of Appraisals: Matt begins by emphasizing the importance of appraisals in real estate transactions. He sheds light on the fact that banks use appraisals to confirm property values and support loans. Acknowledging the mundane nature of the process, Matt emphasizes its critical role in validating the online data and photos available, providing the necessary street-level context.
  • Tips for Listing Agents: Matt stresses the need for listing agents to be proactive in the appraisal process. He advises listing agents to accommodate appraisers' schedules and foster a positive relationship with them. By preparing essential documents, such as the fully executed contract, property comps, floor plans, and surveys, agents contribute to a smoother appraisal process.
  • Strategies for Success: Matt shares practical strategies for ensuring that the appraised value aligns with the contract price. While acknowledging rare instances where online data suffices, Matt encourages listing agents to actively engage with the appraisal process. Building a positive rapport with appraisers, he suggests, can lead to more accurate valuations and smoother transactions.
  • Navigating Appraisal Discrepancies: The real challenge arises when the appraised value differs from the contract price. Matt provides insights into potential solutions, urging listing agents to work collaboratively with buyers and sellers. While proposing a change of lenders as an option, he acknowledges the need for negotiation between parties to cover any under-appraised value.
  • Addressing Under-Appraised Values: In the unfortunate event of an under-appraised value, Matt outlines two primary solutions. First, he recommends negotiating a new price with both the buyer and seller's consent. Second, in extreme cases, sellers may choose to hold firm on their sale price, putting the burden on the buyer to cover the discrepancy or terminate the deal.
  • Setting Client Expectations: Lastly, Matt emphasizes the importance of preparing sellers for potential appraisal discrepancies. By proactively communicating the appraisal process, its purpose, and potential outcomes, agents can mitigate surprises and foster trust with their clients.

Ready to redefine your real estate career? Join Mark Allen Realty today at JoinMar.com and unlock a world of opportunities. Experience transparency with every agent at our firm at a 90/10 commission split and a $250 transaction fee, transitioning to 100% commission after a $20k cap. Enjoy no monthly fees, access comprehensive training in our virtual campus, and leverage the power of Sierra Interactive CRM.

But that's not all – at Mark Allen Realty, we believe in learning from the best. Benefit from direct mentorship by our brokerage expert, Matt Liss, a top 1% Chicagoland real estate agent. Earn passive income through agent recruitment and take advantage of a pre-negotiated healthcare discount, saving an average of $8,000 annually.

Your journey to financial success and career fulfillment begins here. Visit JoinMar.com to learn more about the benefits of joining Mark Allen Realty and take the first step towards a thriving real estate career.

Post a Comment